Tips to Improve Your Credit Score

If one is interested in attractive borrowing terms and low rates, he/she should be a desirable client for any bank.

A credit score is a kind of a visiting card when you are applying for any kind of borrowing.

Find out what data are needed for credit score calculation, if your credit score is poor, fair or perfect and check several basictips to make your credit score higher.

What You Should Know about Credit Score Calculation

Your credit, or FICO, score is rated on the basis of your credit history report data. All data both positive and negative are calculated and separated in five groups as provided below:

Payment history is the first thing lenders look at as it proves you have paid in time

Owned funds

General length of credit history. Longer history usually increases the general credit score

All types of credit used before

New credit or several credit accounts

A lender usually studies all the categories provided in the report before approving or denying an application.

It’s not possible to single out the one which would be of top importance for all the cases. With the help of tips on credit score improvement you can change practically all categories data.

Lowest and Highest Credit Score

The lowest claimed FICO score is 300 and the highest is 850. For you to check how high your score is, see the offered gradation:

Beneath 600 – poor or bad score.

700 and above 600 – fair score.

850 is a rare but still perfect score.

People with a bad credit score are usually offered high interest rates because of higher credit risk. At the same time owners of perfect and fair credit scores can count on low interest rates from most financial institutions and face no issues with loan or mortgage approval.

Failing to pay off the loan on time, I got my credit score quite low. And the issue is that the following loan will be extremely inconvenient for people with bad credit history. Thus, I started looking for possible ways to improve credit score and managed to significantly advance it. Now, I can freely get the desirable loan at optimal rates and without extra concerns.